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New Member
posted Feb 23, 2020 7:10:14 AM

Can I deduct 529 contributions on MN state return? Where can I find the specific section to enter this contribution information?

The only available related note under the 'Education' section involves the 1099-Q. There were no withdrawals so that form does not apply. I just need to deduct for my contributions (at the $3,000 limit).

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3 Replies
Expert Alumni
Feb 23, 2020 7:43:58 AM

Yes, there are couple of tax benefits for 529 plan contributions in MN.

 

There is a non-refundable credit of up to $500 available for certain residents.  The amount of the credit is 50% of the contribution up to $500, but the credit begins to phase out at $78,340 of adjusted gross income (AGI), and is completely phased out at AGI of $103,340 or $166,010 married filing jointly.

 

If you do not claim the credit, you can subtract from your federal adjusted gross income (AGI) the "net contributions to qualified accounts" up to $1,500 or $3,000 for married filing jointly.  

 

These options will be available to you in the MN state tax return interview.

 

 

Level 1
Mar 10, 2020 9:47:51 AM

In what specific section of the MN tax interview?

Expert Alumni
Mar 10, 2020 4:54:43 PM

In the Minnesota State tax return section of TurboTax there is a page that asks: "Did you make any contributions to a 529 College Savings Plan?" Answer Yes, and then enter your 529 Plan contributions.  See Screen Shots below: